Castlelake Taps CBRE to Market Master-Planned Portfolio
CBRE has been exclusively retained by Castlelake LP, a global alternative investment firm, to market the sale of a master-planned community portfolio across Austin, Dallas, Houston and Nashville. The portfolio consists of 2,300 remaining single-family detached lots and excess land for potential development located within five fully entitled and well-established residential master-planned communities. More than $250 million of total infrastructure investment has been completed across the communities to date with nearly 3,700 closed lot/home sales to date.
Patrick Arangio, Jack Howard, Chris McClain, Kurt Altvater of the CBRE capital markets national portfolio sale advisors team and Steve Lehr of CBRE’s land services team have been retained to act as the exclusive advisers for the sale.
“This is an excellent opportunity to acquire a critical mass of highly desirable residential lot inventory along with excess land for commercial development. The lots are within proven master-planned communities located across the highly sought-after growth markets of Austin, Dallas, Houston and Nashville,” said Howard.
The portfolio includes contractual municipal expense reimbursement programs at each of the communities, providing guaranteed reimbursement for a substantial amount of the total project development costs.
“There is over $120 million of anticipated receivables expected for near-term reimbursement that will inure to a buyer at closing, adding an additional dependable revenue stream to prospective buyers,” said Arangio. “Both partners have expressed a strong interest to stay on and provide a ‘plug and play’ option to work with new capital to help facilitate a smooth transition and business plan completion. An investor may also benefit from the operating partners’ existing relationships within the respective municipalities.”
Approximately 81 percent of the total remaining inventory is currently under contract with non-refundable deposits securing the purchase options from an established roster of regional and national homebuilders. Investors may also have the opportunity to partner or joint venture with two existing specialized operating partners, both of which have successfully executed on the existing business plans.